I'd like to talk to you today about Canada Mortgage and Housing and the new guidelines that they are using for buying a home. These are all available for you in the Book that I have from Canada Mortgage and Housing which is called Home Buying Step by Step.
It's the steps in how the bank is taking you through the mortgage process and what their qualifying criteria is. Very simply put, when you make a contract for the interest rate, that is for the specific period of time, being two years or five years, and then you have the duration which is the amortization of the mortgage, how long can we stretch your repayment period, is now capped at 30 years.
The guideline provides that you can borrow a maximum of 80% against the Purchase Price of the house, without Mortgage Insurance, your bank may still want it, there are reasons for that. Amounts over 80% Require a Canada Mortgage and Housing Insurance Premium.
We are able to show you how they calculate your principal, interest and taxes, plus half heat
to generate your Gross Debt Service, and total Debts service numbers. So you will know what you are talking about in terms of your total income against your gross paycheck
You need to have a full time job to qualify for a mortgage, Sometimes there are exceptions, where you can pay a bit more on the rate. Different Lenders, I can help you with that.
The numbers are important and when you are ready we can make a house specific application for you. This is different from a pre-approval. Pre-Approval is general in nature; How much do you make and How much might you qualify for if you purchased a house?
A specific approval on a property they verify that you actually have the deposit down payment on hand, when you are actually turning up at the closing, verify employment, when is it going to close, at what rate and looking after all of your details.
I would like to hear back from you if you are shopping this year, in the August, September, or the fall Real estate Market in West Toronto Etobicoke or Mississauga,
If you would like your copy of Home Buying Step by Step from Canada Mortgage and Housing...
Give me a call at 647 218 2414
I would be pleased to meet with you and provide those details.